EADS, BAE

Systems in advanced merger talks - sources

WASHINGTON, Sept 12 (Reuters) - Europe's EADS, theparent of Airbus, and Britain's BAE Systems Plc are inadvanced discussions about a merger, two sources close to thedeal said on Wednesday.

A merger of the two European aerospace companies would notbe expected to raise antitrust concerns in the United Statesgiven the modest amount of U.S. military revenues generated byEADS, according to the sources, who were not authorized to speakpublicly.

They said a merger has been under discussion for severalmonths, spurred in large part by declining defense spending inEurope and the United States.

Later, BAE and EADS confirmed that they were in talks toform a dual-listed company.